Russian retailer O'Key Group has announced that it has signed a strategic partnership with Familia, a leading 'off-price' retailer.
The agreement will see Familia open stores in two of O'Key's hypermarkets, in Ekaterinburg and Tyumen in the second half of this year. In addition, the two groups will engage in joint marketing campaigns.
Partnership Extension
Further to the development of the two stores this year, the partnership 'is likely to be extended to further O’Key stores in other locations from next year', the group said in a statement.
We are pleased to announce our partnership with Familia, a leading off-price retailer in Russia," said Miodrag Borojević, chief executive of O'Key Group.
"This contract marks the start of a long-term strategic relationship which will boost the efficiency of our hypermarkets by attracting additional traffic and selling space optimisation.”
'Compact Hypermarket'
The group announced the move as part of an initiative to develop what it describes as a 'compact hypermarket' concept, which will see it lease selling space to strategic partners without decreasing the number of products it offers in a store.
”This partnership with O’Key is a key milestone for our company. The agreement should generate additional traffic both for our stores and the hypermarkets in which they are based," said Konstantin Nadezhdin, Familia Group chief executive.
"We are confident that this cooperation will further strengthen our position as a leading off-price retailer in the Russian market.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
